Post 12 February

Raw Materials and Sustainability: The Steel Industry’s Path Forward

Materials Manager - Inventory Control, Procurement, and Supply Chain Efficiency | EOXS

Sustainability is no longer just a buzzword in the steel industry; it’s a critical component of its future.

As one of the largest industrial sectors globally, the steel industry faces significant environmental challenges. This blog explores how the industry is addressing these challenges through innovative approaches to raw materials and sustainability practices.

The Environmental Challenge

Steel production is resource-intensive, consuming vast amounts of raw materials and energy. The primary raw materials, iron ore, and coal, are finite resources that contribute to environmental degradation. The industry’s carbon footprint is substantial, with steel production accounting for about 7-9% of global CO2 emissions. Given the urgent need to combat climate change, the industry must adopt sustainable practices to reduce its environmental impact.

Innovative Approaches to Raw Materials

Recycling and Reuse

Scrap Steel: Recycling scrap steel significantly reduces the need for virgin raw materials. The electric arc furnace (EAF) method, which uses scrap steel, is less energy-intensive than traditional blast furnace methods. This shift not only conserves natural resources but also cuts down on greenhouse gas emissions.
Slag Utilization: By-products like slag can be repurposed in other industries, such as construction, reducing waste and the demand for new raw materials.

Alternative Raw Materials

Hydrogen: Hydrogen-based steelmaking, such as using direct reduced iron (DRI) with hydrogen, can drastically cut CO2 emissions. This method replaces carbon-based reducing agents with hydrogen, resulting in water vapor instead of carbon dioxide.
Biochar: Using biochar as a reducing agent in place of coke or coal can significantly lower carbon emissions. Biochar is made from sustainable biomass sources, contributing to a circular economy.

Technological Innovations

Carbon Capture and Storage (CCS)

Implementing CCS technologies can capture up to 90% of the CO2 emissions produced from steelmaking processes. This captured carbon can then be stored underground or utilized in other industrial applications.

Electric Arc Furnaces (EAF)

EAFs, which primarily use recycled steel, are less energy-intensive and produce fewer emissions compared to traditional blast furnaces. Advancements in EAF technology are making them more efficient and cost-effective.

Digitalization and Smart Manufacturing

The integration of IoT, AI, and big data analytics in steel manufacturing processes can optimize energy use, reduce waste, and enhance overall efficiency. Smart manufacturing technologies enable predictive maintenance, reducing downtime and improving resource management.

Sustainability in Supply Chains

Responsible Sourcing

Ensuring that raw materials are sourced responsibly is crucial. This involves working with suppliers who adhere to environmental and social governance (ESG) criteria. Traceability and transparency in the supply chain help in mitigating the risks associated with unsustainable practices.

Circular Economy Practices

Adopting circular economy principles, such as designing products for longer life, recycling, and reusing materials, helps in reducing waste and conserving resources. This approach not only supports sustainability but also enhances economic resilience.

Industry Collaboration and Policy Support

Collaborative Efforts

Industry-wide collaborations and partnerships are essential for driving sustainability. Initiatives like the ResponsibleSteelâ„¢ certification program set standards for sustainable practices, promoting a culture of continuous improvement across the industry.

Government Policies and Incentives

Governments play a vital role by providing policy support and incentives for sustainable practices. Policies that encourage the use of renewable energy, carbon pricing, and funding for research and development in green technologies are crucial for the industry’s transition towards sustainability.